10/19/2018 – A mixed week with the Dow Jones up 105 points (+0.41%) and the Nasdaq down 47 points (-0.62%)
As we have been saying, the stock market finds itself at an incredibly important juncture. Things are about to move. If you would like to find out what happens next, based on our timing and mathematical work, in both price and time, please Click Here.
Just how fast can we go from the World’s Most Competitive Economy to Great Depression 2.0? According to the IMF, incredibly fast. Let’s start with good news.
U.S. Wins Title of World’s Most Competitive Economy for First Time in a Decade
The World Economic Forum, which hosts the annual conference of global elites in Switzerland, said on Tuesday that the United States is the most competitive economy in the world. The U.S. has not held the number one spot since 2008, when the aftermath of the financial crisis and bungled recovery efforts left the U.S. economy limping.
“The United States, as one of the world’s great innovation powerhouses, is very well positioned in this new competitive landscape,” the Forum said in an article explaining its ranking. “It ranks first overall in the world in three of our twelve pillars; business dynamism, labour markets and financial system. It comes second in another two; innovation (behind Germany) and market size (behind China).”
Deranged MAGA chants were heard coming out of the White House as soon as the news broke. With that in mind, it is not all rainbows and unicorns.
IMF Issues Dire Warning – ‘Great Depression’ Ahead?
Is another “Great Depression” on the horizon?
It would be easier to dismiss these words from Nouriel Roubini, Marc Faber or other doom-and-gloom prognosticators. Coming from Christine Lagarde’s team, though, they take on a new dimension of scary.
The International Monetary Fund head isn’t known for breathlessness on the world stage. And yet the IMF sounded downright alarmist in its latest Global Financial Stability report, stating that “large challenges loom for the global economy to prevent a second Great Depression.”
Even some market bears were taken aback. “Why,” asks Michael Snyder of The Economic Collapse Blog would the IMF use this phrase “in a report that they know the entire world will read?”
Wait, what?
This is rather simple. Recessions and depressions follow irrational exuberance caused by imbeciles in power who were hell bent on juicing the Everything Bubble with massive amounts of debt. But don’t listen to me, even President Trump is getting ready….
Here’s who Trump will blame when stocks tumble
President Trump is a master at blame-ducking. And he has recently telegraphed who he plans to hold responsible whenever there’s a meaningful drop in the stock market.
Trump has become a vocal critic of the Federal Reserve, complaining that the central bank is raising interest rates too far, too fast. He recently griped that the Fed is “going wild,” even though most economists support the Fed’s strategy of gradually pushing interest rates back toward historical averages.
All of the above is nice in theory, but useless when it comes to predicting capital markets. We might help….
If you would like to find out exactly what the stock market will do next in both price and time, based on our timing and mathematical work, please Click Here
